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SEC Filings

GREENSKY, INC. filed this Form 10-Q on 11/09/2018
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We have experienced rapid growth, which may be difficult to sustain and which may place significant demands on our operational, administrative and financial resources.
The number of loans originated through the GreenSky program grew from approximately 289,000 in 2015 to approximately 488,000 in 2017, and our total revenue grew from $173 million in 2015 to $326 million in 2017. Our rapid growth has caused significant demands on our operational, marketing, compliance and accounting infrastructure, and has resulted in increased expenses, which we expect to continue as we grow. In addition, we are required to continuously develop and adapt our systems and infrastructure in response to the increasing sophistication of the consumer finance market and regulatory developments relating to our existing and projected business activities and those of our Bank Partners. Our future growth will depend, among other things, on our ability to maintain an operating platform and management system sufficient to address our growth and will require us to incur significant additional expenses and to commit additional senior management and operational resources.
As a result of our growth, we face significant challenges in:
securing commitments from our existing and new Bank Partners to provide loans to customers of our merchants;
maintaining existing and developing new relationships with merchants and Sponsors;
maintaining adequate financial, business and risk controls;
implementing new or updated information and financial and risk controls and procedures;
training, managing and appropriately sizing our workforce and other components of our business on a timely and cost-effective basis;
navigating complex and evolving regulatory and competitive environments;
securing funding (including credit facilities and/or equity capital) to maintain our operations and future growth;
increasing the number of borrowers in, and the volume of loans facilitated through, the GreenSky program;
expanding within existing markets;
entering into new markets and introducing new solutions;
continuing to revise our proprietary credit decisioning and scoring models;
continuing to develop, maintain and scale our platform;
effectively using limited personnel and technology resources;
maintaining the security of our platform and the confidentiality of the information (including personally identifiable information) provided and utilized across our platform; and
attracting, integrating and retaining an appropriate number of qualified employees.
We may not be able to manage our expanding operations effectively, and any failure to do so could adversely affect our ability to generate revenue and control our expenses.
If we experience negative publicity, we may lose the confidence of our Bank Partners, merchants and consumers who use the GreenSky program and our business may suffer.
Reputational risk, or the risk to us from negative publicity or public opinion, is inherent to our business. Recently, consumer financial services companies have been experiencing increased reputational harm as consumers and regulators take issue with certain of their practices and judgments, including, for example, fair lending, credit reporting accuracy, lending to members of the military, state licensing (for lenders, servicers and money transmitters) and debt collection. Maintaining a positive reputation is critical to our ability to attract and retain Bank Partners, merchants, consumers, investors and employees. Negative public opinion can arise from many sources, including actual or alleged misconduct, errors or improper business practices by employees, Bank Partners, merchants, outsourced service providers or other counterparties; litigation or regulatory actions; failure by us, our